candle stick question

[sodapop]

Hi folks.
I learning about candle sticks and here is a question I hope someone can clear up for me.
Lets say I'm looking at a 15 min green candle stick. It shows a solid body and shadows.

Bottom of the shadow: 50 cents
Top of the shadow: 2.00
Open price bottom of solid body: 1.00
close price top of solid body: 1.75

I'm a little confused about the open and close. If the candle starts at 50 cents how could there be an open at a 1.00. I mean wouldn't the open price be at 50 cents and where does the 15 mins start, at 50 cents or a dollar.

 

[mpups]

Hi folks.
I learning about candle sticks and here is a question I hope someone can clear up for me.
Lets say I'm looking at a 15 min green candle stick. It shows a solid body and shadows.

Bottom of the shadow: 50 cents
Top of the shadow: 2.00
Open price bottom of solid body: 1.00
close price top of solid body: 1.75

I'm a little confused about the open and close. If the candle starts at 50 cents how could there be an open at a 1.00. I mean wouldn't the open price be at 50 cents and where does the 15 mins start, at 50 cents or a dollar.

what makes you think 50 was the start?
100 was the start (open)

 

[Dowser]

My suggestion would be to look at a one minute chart of the same period, this will show you more detail and help you understand how the 15 minute candle was formed.

 

[tomorton]

The candlestick represents a sequence over the 15 minutes, starting with the Open, ending with the Close. The High and the Low fall between the two, somewhere in the 15 minute period, but its not important in most trading strategies in which order they occurred.

So, at the start of the 15 minutes, price was at 1.00. It then fell to 0.50, but then rose all the way to 2.00. Some time after that it fell back to 1.75 as the candle ended.

Same principle for all candles and bars, regardless of duration.

 

[Dowser]

So, at the start of the 15 minutes, price was at 1.00. It then fell to 0.50, but then rose all the way to 2.00. Some time after that it fell back to 1.75 as the candle ended.

Yes, this is the most likely scenario. However, the price could also have risen from 1.00 to 2.00 first, then fallen back to 0.5 then risen back to 1.75 and closed. The price could also have pogo'd between the high and low 10 times and you'd still see the same candle! That's the thing with candlesticks and just about any time based chart - you are simplifying the price data and losing detail and that is why I suggested looking at a one minute chart to show how the 15 minute candle was formed.

 

[tomorton]

Yes, this is the most likely scenario. However, the price could also have risen from 1.00 to 2.00 first, then fallen back to 0.5 then risen back to 1.75 and closed. The price could also have pogo'd between the high and low 10 times and you'd still see the same candle! That's the thing with candlesticks and just about any time based chart - you are simplifying the price data and losing detail and that is why I suggested looking at a one minute chart to show how the 15 minute candle was formed.

I bloody know that cbrads. Have you nothing better to do?

 

[userque]

Hi folks.
I learning about candle sticks and here is a question I hope someone can clear up for me.
Lets say I'm looking at a 15 min green candle stick. It shows a solid body and shadows.

Bottom of the shadow: 50 cents
Top of the shadow: 2.00
Open price bottom of solid body: 1.00
close price top of solid body: 1.75

I'm a little confused about the open and close. If the candle starts at 50 cents how could there be an open at a 1.00. I mean wouldn't the open price be at 50 cents and where does the 15 mins start, at 50 cents or a dollar.

50 cents is the LOW, not the "start," nor the OPEN.

IOW, it OPENED at 1.00, and at some point during the day, traded as low as 50 cents.

 

[Dowser]

I bloody know that cbrads. Have you nothing better to do?

I bloody know you bloody know that tomorton, my reply was for the benefit of the OP, who clearly was confused by candlesticks. We don't want him any more confused do we?